[Updated June 26, 2023]

While tradies are generally across their need to have public liability insurance and general property insurance in place, you’re probably less likely to think about professional indemnity insurance. After all, isn’t that reserved for professionals like doctors or lawyers? Well, this isn’t the case and there are many tradies who would benefit from have indemnity insurance in place. Let’s take a look at what you can expect with professional indemnity insurance for tradies.

What is professional indemnity insurance?

Professional indemnity insurance is designed for professionals who provide professional advice or services as part of their job. This would include tradies who charge a separate fee for advice, such as electricians, tradies who carry out pest control and those working in the construction industry. Professional indemnity insurance provides financial protection against claims from a third party following financial loss due to a breach of profession duty or negligence resulting from an act, error or omission. It not only covers the costs associated with a claim but also legal bills involved with the process.

What is covered under professional indemnity insurance?

Professional indemnity insurance provides financial protection against the costs associated with investigating, defending and settling a claim. This includes the legal costs associated with an indemnity claim. You may also need to hire a public relations professional to assist if your reputation is damaged and your indemnity insurance will also cover these costs.

There are also things that professional indemnity insurance won’t cover. Common exclusions include events which occurred prior to the period of insurance, intentional damage or illegal behaviour and contractual liability. It’s important to read the Product Disclosure Statement (PDS) of your indemnity insurance policy so you understand exactly what’s covered.

Why do tradies need professional indemnity insurance?

If you provide advice to your clients as part of your work, and you charge a fee for that advice, you’ll need to consider having professional indemnity insurance in place. If the advice you provide results in financial loss to a third party, indemnity insurance ensures that you’re protected financially. Professional indemnity insurance is also important for tradies who are involved producing designs and specifications to a third party. In some cases, it may be requirement of your contract that you have indemnity insurance in place. If you’re not sure whether professional indemnity insurance is necessary for your business, speak to your insurance broker for individual advice.

Here at All Trades Cover, we are the specialists in insurance for Australian tradies. We understand the risks you face in your work and we have a targeted trade insurance package which ensures that you’re protected financially when things go wrong. We offer the convenience of monthly payment options and tax audit cover is included as standard in our trade insurance package.

If you want more information about professional indemnity insurance, contact All Trades Cover today on 1300 826 850.

John Elliott

John Elliott

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An industry veteran with a vision to revolutionise insurance for tradespeople, John Elliott founded All Trades Cover with a commitment to make insurance easy, efficient, and affordable for tradies across Australia.

With 2 decades of experience and thousands of insured clients nationwide, John’s vision has become a reality. All Trades Cover is now a trusted partner for tradies, offering top-tier coverage at competitive prices. But it’s not just about cost savings.

John’s innovative approach focuses on simplicity and speed without compromisingon quality.

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